Top 5 Tips for Preparing for an Auction - By Monica van Riet - Mortgage Choice South Melbourne

Bidding at an auction can be daunting and nerve racking at the best of times. Check out my top 5 tips below... 

1. Have the Contract of Sale/Section 32 reviewed by a conveyancor before you place an offer/bid at auction. Most should do this without charging you, if you later engage them for the work.

2. Ask the agent what is the Vendor's preferred settlement period. I'd prefer nothing less than a 60 day settlement if possible. 45 days worst case.

3. Ask the agent if they will take 5% deposit on the day, which just means you can hang onto your savings for a bit longer. If not, they'll want 10% on the day. You could also use a Deposit Bond, which is in lieu of using your cash. Speak to us for more info about this.

4. Ask how they want this deposit paid on the day if you're successful. Would they need a bank cheque, or will they take say $5k cash on the day, and the rest via a bank transfer on Monday. Or will they take a Deposit Bond, as per above. If they want a cheque, you'll need to get a bank cheque prepared prior to auction from your bank, I guess for an amount which would equal 5% or 10% of your maximum bid. Be mindful that you may be 'showing your cards' here. So perhaps have a cheque made out for a bit less, then you can just say you'll transfer the extra few thousand on the Monday.

5. If you are successful, sign the Contract of Sale with both of your full names (including middle names)

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